In an exclusive interview with Barron’s on the 9th, Jan van Eck, CEO of global asset management giant VanEck, made future price predictions for Bitcoin, which is still in a bear market.
As a Bitcoin bull, the CEO sees a rise to the $250,000 level, but it could take decades.
“Investors see it as a complement to gold, that’s the short version. Bitcoin has a limited supply, the supply is visible, and changing that is almost impossible. Bitcoin will reach half of gold’s market cap, or $250,000 per Bitcoin , but that could take decades. It’s hard to put a time frame on it.”
He added that Bitcoin prices will rise further as it matures, and its institutional adoption increases every year. Not only institutional investors, but governments around the world see it as a useful asset.
His underlying assumption is that Bitcoin will be in portfolios, like silver’s historical role. People looking for a store of value will be looking at gold, but also bitcoin. We are in the middle of an adoption cycle and have further upside.
A maximum of 3% of your portfolio should be allocated to BTC
Jan van Eck’s prediction comes from the long-suffering crypto bear market. Bitcoin, which had a clear rally this week, fell below the $30,000 mark again on the 8th, and has continued to fluctuate in this range so far. Last night, BTC fell below 30K again, bleeding 4% to a low of $28,850 in 5 hours. It recovered to $29,320 by the time of writing, down 2.68% in the past 24 hours.
For BTC, which has been sluggish recently, the CEO believes that it has a bright future.
“In 2017, I thought the drawdown risk was 90%, which was dramatic. I think the biggest drawdown risk right now is around 50%. That means it should have a floor of around $30,000. But as Bitcoin keeps going is adopted, it can take years and multiple cycles to fully develop.”
He also said that investors should allocate 0.5% to 3% of their portfolio to bitcoin. And revealed that his allocation is higher because he has a firm belief that Bitcoin is an ever-evolving asset.
Additionally, he has held ether (ETH) since 2019 and believes it is wise to have a diversified portfolio.
When Will Bitcoin Spot ETFs See Dawn?
Last October, VanEck became the second company to be cleared by the U.S. Securities and Exchange Commission (SEC) for a bitcoin futures ETF. But the application for a bitcoin spot ETF was rejected the following month. In response to the issue of spot bitcoin ETFs, the CEO said: The SEC will not want to approve bitcoin spot ETFs until it gains jurisdiction over cryptocurrency exchanges, which must be done through legislation. And in an election year, such legislation is unlikely to happen.
With the recent continuous depreciation of cryptocurrencies, the prices of cryptocurrency mining machines have also fallen back, among which Avalon’s machines have fallen the most. In the short term, Avalon’s machine may become the most cost-effective machine.
Post time: Jul-23-2022